Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes included the following (in millions):

	Years ended December 31,
	2023		2022		2021
Domestic	$	4,047	$	3,026	$	1,850
Foreign	3,808		4,320		4,851
Total income before income taxes	$	7,855	$	7,346	$	6,701

Provision for Income Taxes

The provision for income taxes included the following (in millions):

	Years ended December 31,
	2023		2022		2021
Current provision:
Federal	$	1,524	$	1,721	$	865
State	43		44		18
Foreign	786		304		359
Total current provision	2,353		2,069		1,242
Deferred benefit:
Federal	(1,124)		(1,185)		(308)
State	(25)		(27)		(9)
Foreign	(66)		(63)		(117)
Total deferred benefit	(1,215)		(1,275)		(434)
Total provision for income taxes	$	1,138	$	794	$	808

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in millions):

	December 31,
	2023		2022
Deferred income tax assets:
NOL and credit carryforwards	$	1,465	$	1,344
Accrued expenses	668		584
Capitalized research and development expenses	1,333		515
Investments	—		270
Expenses capitalized for tax	210		211
Earnings of foreign subsidiaries	1,260		192
Stock-based compensation	159		104
Other	416		317
Total deferred income tax assets	5,511		3,537
Valuation allowance	(957)		(718)
Net deferred income tax assets	4,554		2,819
Deferred income tax liabilities:
Acquired intangible assets	(3,028)		(1,238)
Debt	(268)		(272)
Fixed assets	(140)		(112)
Fair value of acquired inventory	(349)		(5)
Investments	(99)		—
Other	(224)		(249)
Total deferred income tax liabilities	(4,108)		(1,876)
Total deferred income taxes, net	$	446	$	943

Reconciliation of Total Gross Amounts of UTBs

The reconciliations of the total gross amounts of UTBs were as follows (in millions):

	Years ended December 31,
	2023		2022		2021
Beginning balance	$	3,770	$	3,546	$	3,352
Additions based on tax positions related to the current year	196		151		171
Additions based on tax positions related to prior years	56		90		35
Reductions for tax positions of prior years	—		(14)		(4)
Reductions for expiration of statute of limitations	(4)		(3)		—
Settlements	(6)		—		(8)
Ending balance	$	4,012	$	3,770	$	3,546

Reconciliation of Federal Statutory Tax Rate

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows:

	Years ended December 31,
	2023		2022		2021
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Foreign earnings	(5.1)	%	(5.6)	%	(7.8)	%
Foreign-derived intangible income	(1.3)	%	(1.3)	%	(1.0)	%
Credits, Puerto Rico excise tax	0.3	%	(2.8)	%	(3.4)	%
Interest on uncertain tax positions	2.6	%	1.9	%	1.1	%
Credits, primarily federal R&D	(3.5)	%	(2.0)	%	(2.1)	%
Acquisition IPR&D	—	%	—	%	4.9	%
Other, net	0.5	%	(0.4)	%	(0.6)	%
Effective tax rate	14.5	%	10.8	%	12.1	%